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16 July 2013

The coalition still isn’t rising to the challenge on affordable childcare

The changes announced today by Liz Truss are unlikely to significantly reduce costs, boost quality or widen access to early years provision.

By Imogen Parker

You might have missed it, but today Liz Truss published the latest instalment in the government’s early years reform plans. More Affordable Childcare is the culmination of the government’s commission on childcare. The looming summer holidays might be a delight for kids, but many working parents will be put under huge pressure by the childcare costs that go with it. The need to bring down the price is urgent.

This year, for the first time, the average cost of holiday childcare per child per week has now topped the hundred pound mark. Childcare inflation marches on, far above salary increases, squeezing family budgets. With the average couple spending over a quarter of their net income on care, England is one of the most expensive countries for parents needing childcare.

The government hasn’t gone far enough to meet the challenge. Today’s publication, following a year long commission on the early years, doesn’t really provide any new approaches to reform. Most of the changes announced are unlikely to substantially reduce costs, boost quality or widen access to early years provision.

The best news from today’s publication is extending the free entitlement for 2 year olds from the most deprived 20 to 40 per cent. This is good news, but old news – restating what was already pledged by the government. Nevertheless, this is an important step forwards, and should have a positive impact for families. Another good measure is increasing funding for out-of-hours care in schools clubs. But this, in essence, is bringing back a weakened version of Labour’s Extended Schools funding, which was previously scrapped by the coalition.

The other announcements tinker at the margins. Cutting red tape is unlikely to lead to parents seeing real savings in their childcare bills. And new IPPR research shows that introducing childminder agencies could lead to costs actually increasing for parents (as well as potentially undermining quality).

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Another bad move is leaving Ofsted as the sole arbiter of quality, and giving settings the automatic right to deliver the free entitlement if they receive a ‘good’ or ‘outstanding’ score. The Daycare Trust recently crunched the numbers and demonstrated that Ofsted isn’t always a reliable judge of quality. Particularly in the case of the under-3s, Ofsted scores failed to reflect which settings were best for children’s development. While high quality childcare is good for children, low quality can actually be detrimental.

There needs to be some new, bold thinking. There’s agreement that getting high quality early years care is important and yields dividends for children, parents and society. But both More Great Childcare and More Affordable Childcare fail to rise to the scale of the challenge.

On cost, the government should look seriously at supply-side funding. There are warnings from other countries, that investing in demand-side funding can lead to spiralling inflation and a system that costs more for everyone.

On quality, the government needs to go further. Our polling, and public responses to reform proposals, show there’s real appetite in the sector for driving up quality and status. We believe there should be a minimum requirement of having or working towards a relevant level 3 qualifications for all professionals delivering the Early Years Foundation Stage. The government should also bring back the successful Graduate Leader Fund to keep driving highly qualified staff. More graduates means more centres are able to look after more three and four year olds at any one time. This could cut costs for parents, without being detrimental to children’s development.

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